Climate controlled seat maker Amerigon Incorporated has reported a net loss for this year’s third quarter of $US146,000, or $0.01 loss per share, compared with a net loss of $1.4 million, or $0.13 loss per share, for the year-earlier period.
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This year’s third quarter net loss was impacted by a non-cash charge of $160,000 for the potential issuance of additional warrants to Ford for achieving its 2003 volume targets.
For the first nine months of 2003, Amerigon’s net loss of $1.7 million, or loss per share of $0.15, was reduced by 67% from a net loss of $5.2 million, or loss per share of $0.54, for the same period last year.
In what it billed “record results for its third quarter and nine months ended September 30”, Amerigon said revenues in this year’s third quarter and nine months more than doubled to $9.2 million and $20.1 million, respectively, from $4.5 million and $8.8 million in the respective year-earlier periods.
Chief executive officer Daniel Coker said: “By almost every measure, we made significant progress in this year’s third quarter. By quarter end, CCS was designed into 13 popular vehicle lines by five major automotive manufacturers and the option take rate at which new car buyers are ordering vehicles equipped with CCS continues to prove very strong.
“These 13 vehicle lines offering CCS increased from seven at the end of last year’s third quarter. With the revenue generated from this base of vehicles, we believe we are on track to achieve our first profitable quarter during the fourth quarter of this year,” Coker added.
Gross margin as a percentage of revenue for this year’s third quarter was 19.5% compared with 22.2% for the third quarter of 2002. The decline in gross margin resulted principally from the inclusion of the electronic control module in the cost and revenue for the company’s next generation CCS system, MTM, and low volume MTM start-up costs. As the production volume of MTM increases and planned cost reductions are achieved, Amerigon believes that gross margins will improve over the next 12 to 18 months.
Amerigon said it has recently been informed by some customers that for reasons not directly related to CCS, the customers are deferring the introduction of several new vehicle programs committed to CCS that were scheduled for launch in 2004 and 2005. The launch of these vehicles was delayed due to current automotive industry sales trends and economic conditions.
“While this will push back CCS revenue from these vehicles by up to 12 to 18 months,” Coker added, “we still expect solid overall increases in 2004 revenues.”
